Effort Reporting Fundamentals

1. Effort Reporting Fundamentals Jaquion Gholston Central Administrator

2. Learning Objectives • What is effort reporting • Why is it necessary • What are the guiding principles governing effort commitment and effort certification • What is ERS and how does it work?

3. EFFORT REPORTING Sponsored Grants & Contracts • Active Awards – Over 500 • Federal • $180,709,921 • Non Federal • $101,801,190

4. EFFORT REPORTING University Effort Reporting Periods • Faculty Effort Reporting Periods: • Spring (January 1 – May 7) • Summer (May 8 - August 23) • Fall (August 24 - December 31) • Academic = 8.5 calendar months & Summer = 3.5 calendar months • Staff (including Grad Assistants) Effort Reporting Periods: • Spring (January 1 - May 7) • Summer (May 16 - August 15) • Fall (August 16 - December 31)

5. EFFORT REPORTING • Effort is defined as the amount of time spent on a particular activity.  It includes the time spent working on a sponsored project in which salary is directly charged or contributed (cost-share). Effort reporting is the mandated method of certifying to the granting agencies that the effort charged or cost shared to each award has actually been completed.

6. Federal Requirements • The federal government requires an effort report when an individual is compensated by or has agreed to contribute time to a federally sponsored project.  All faculty who serve as Principal Investigators (PI) on sponsored agreements are personally responsible to ensure the amount of effort that they and their employees spent on sponsored activities is certified.

7. Risk of Not Complying • Institutional disallowances can result if: • The effort report was certified by an individual other than the employee or someone who has "first-hand" knowledge of 100 % of the employee’s time. • The effort report does not encompass all of the activities performed by the employee under the terms of their employment. • The levels of effort reported do not appear reasonable, given the responsibilities of the individual. • Individual disallowances can result if: • The effort report certified by the individual is found to be falsified. • The levels of effort reported do not appear reasonable. Federal audit disallowances can result in serious financial and reputational penalties for the University.

8. Definitions • Committed Effort. Proportion of effort explicitly devoted to a sponsored activity. • 100% effort is the total effort expended by an employee in the performance of institutional duties. • All effort (activities) must total 100%, even though the appointment may be less than 1 FTE.

9. Definitions • Effort distribution. The allocation of one’s time to various activities. Distribution likely will vary within and across departments.. 25% Project A Sponsored Activity - %50 25% Project B 40% Teaching Institutional Activity - %50 10% Service (Includes grant writing, which is not allowed as direct cost) & Admin 100% effort

10. Definitions • Effort certification. Documentation by individual or someone with suitable means of verification (direct knowledge) that effort reported is a reasonable reflection of work performed. • Associated costs charged represent actual costs.

11. Why is it necessary? • Condition of receiving federal funding • Federal regulations • Office of Management and Budget (OMB) Circular A-21 • http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html • j. 10. Compensation for personal services. • Other regulations: OMB A-110, A-133, etc • Fed’s want to know • They got what was promised • They got what they paid for • They didn’t get harmed

12. The Regulations require that… • Adhere to all applicable federal regulations and • An institution adhere to its own policies

13. The Regs require that… • Effort, for all Sponsored & Institutional activities, is to be confirmed by the employee. • In some cases effort may be confirmed by responsible person with suitable means of verification that the work was performed • At SU – all exempt employees certify their own effort.

14. The Regs require that… • Costs charged represent actual costs. • Charges for effort on a sponsored project (or institutional account associated with sponsored project) were • fairly made, • accurate, and • recorded in a timely manner.

15. The Regs require that… • Direct charges to chart string may originally be based on estimates. However, costs charged must be actual costs. • When estimates are used, significant changes (i.e. 5% of effort distribution category) in the corresponding work activity must be identified and entered into the payroll distribution system. • Short term (1 or 2 months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wage is reasonable over the longer term, such as academic period

16. Key steps in the ER process - #1Understanding your work load and Effort Distribution. • What is your baseline effort distribution? • What does SU expect and pay you for? • 40% R, 40% T, 20% S ?? • 30% R, 60% T, 10% S ?? • Other distribution • # courses in pct teaching?

17. Key steps in the ER process - #1Understanding your work load and • On average how do you actually spend your time? • 25 hr R, 15 hr T, 15 hr S = 55 h/wk • Effort reporting is not about tracking hours worked, but the employee needs to have a general sense of average work load to estimate effort distribution. • ~45% R, ~27% T, ~27% S

18. Your baseline institutional effort distribution • Have conversation with chair / dean… • Are all expectations in alignment? • Teaching load? (# courses per semester) • Research productivity? • External funding ?? • Service – committee assignments etc • Understanding your effort distribution is foundation of accurate effort reporting. • Document baseline effort distribution. • May change annually or more frequently.

19. Key steps in the process - #2 Introducing sponsored activities • Proposal development – • You are making a commitmentto the sponsor to work a specific level of effort on a project. • Commitment – reasonable level to conduct project given resources / time (duration) available.

20. Considerations • What’s on your plate? • Will everything (effort distribution) stay the same? • Add sponsored to everything else? or • Give something up? • Sponsors may assume ‘proportion of institutional duties ‘constant’ unless adjustments documented … • Nature of ‘work plan’  how much “time” needed to accomplish goals and objectives (proportion of all duties?) • What does sponsor expect

21. Why reflect on effort commitments at proposal development? • Written promise becomes condition of award…. • UNLESS explicitly modified and documented during agreement negotiations. • Avoid over commitment (sponsor not getting fair deal)

22. Where & when is effort committed? • When applications or proposals are submitted… • Budget and budget narrative • PI will devote 25% academic year and 100% summer effort to the project. Only summer effort will be charged to the grant. Cost-sharing • Project coordinator will devote 50% effort throughout the calendar year • 1 summer-month support is requested

23. Key steps in the process - #3 Honoring your commitment • At notice of award  reflect: • Proposed commitment realistic in context of all duties? • No over commitment? • Other considerations? (leave, course relief?) • If okay  modify appointment – iJAN • iJan  translate effort to payroll… • If not  contact OSP to negotiate new commitment to sponsor.

24. Key steps in the process - #3 Honoring your commitment • Monitor project. • Regular reflection – commitment (aka payroll) = ‘reasonable estimate’ of work performed? • Adjust after the fact – PAR • Adjust in anticipation of change or when new effort distribution occurs – iJAN • REMEMBER: reductions in effort for an extended period of time (e.g. 3 months or 25% reduction from feds) require prior approval from sponsor. • Reasonable estimate..

25. What about summer effort? • Not institutional effort BUT part of annual budget / work plan to sponsor… • Rate of pay can not exceed rate from IBS. • Only sponsor can benefit. • Effort certified is expressed percent of compensation received. • Effort always totals 100%. • Check ‘payroll’ to confirm if FTE less than 1.0.

26. What about extra service or overload? • Inclusion should be noted on OSP Internal Routing and Review form – signed by individual’s chair or supervisor. • Explicitly requested in budget and justified in budget narrative if cost-reimbursable funding. • Statement need not be included in fixed price contracts, but must be clear from internal backup documentation. • Overload or extra service requested after the award has been received ordinarily requires sponsor approval.

27. Certifying effort • Based on knowledge/reflection • After each semester – all exempt personnel asked to review effort committed to each award  does effort reported reflect effort worked in the context of all institutional duties and appropriately charge? • Yes – Certify • No – adjust (work with budget manager)

28. Electronic Effort Reporting – ERSFlow Chart

30. Progress to Date • 2008 Fall Certification Period Go - Live • January 12, 2008 • 60 Days • 568 out of 568 forms completed • 100% • 2009 Spring Certification Period • 30 Days • 590 out of 590 forms completed • 100%

31. Benefits of ERS • Timely submission of effort certifications • Timely and accurate submission of payroll reallocations • Cost transfer processed through ERS during certification window. • Electronic cost transfers outside ERS at all other times!!

32. Contact Information • Proposal commitment questions • OSP • Award negotiation; post award modifications • OSP • Effort certification procedures • Jaquion Gholston X1762; jgholsto@syr.edu • Questions? ospoff@syr.edu, conacct@syr.edu

33. Syracuse University Questions?